Who can register and what are the advantages of the SME certificate?

The Ministry of Production and Labor has indicated that "If you are a natural person, monotributor or registered manager, you have time until May 31 to continue to rely on the benefits of the SME certificate."From this date, it will be necessary to renew the registration.

Micro, small or medium businesses must enter with a tax code to activate the registry service. When they do, they receive a certificate attesting their SME status. With this certificate, they can access the tax benefits and badistance programs of their company, says the report Production.

Who can register?

The monotributistes , professionals, entrepreneurs, merchants, businesses, small and medium-sized businesses, as well as all human or legal persons who meet billing requirements established by law.

Companies that carry on the activity "Insurance Service" or "Provision of Real Estate Services" can register as an SME if their financial badets do not exceed $ 100 million.

They can not register companies that do one of these activities:

• Service of private residences that engage a domestic service.
• Services of organizations and extraterritorial organizations.
• Public administration, defense and compulsory social security.
• Gambling and betting services.

What are the advantages?

From the standpoint the benefits are many it brings the pyme cerficado. The permanent They are:

• Elimination of the deemed minimum income tax, years started in January 2017.
• Compensation for tax on debits and bank credits with income tax: 100% for micro and small enterprises and 60% for medium enterprises Section 1.
• Deferred 90-day VAT payment for micro and small businesses.

AT investments made before December 31, 2018, the following tax benefits apply:

• Benefit account corresponding to 10% of productive investments, up to 2% of average sales this year and the previous year. This limit extends to 3% for the industry sector.
• Bonus of the tax credit generated by the investment made during the financial year, provided that it includes the technical balance sheet in favor of VAT at the date of presentation of the income tax.

Certificate of absence of VAT

MSMEs may apply for a certificate of non-retention of VAT when the balance of their tax return is favorable for two fiscal years prior to the order.

At the time of the application, Section 1 of small and medium-sized enterprises must have a balance in favor in the latest sworn statement of VAT due, equivalent to 10% of the average of the tax determined in the statements of the last 12 fiscal years to less.

It can not be requested by companies developing construction and mining activities, nor by human persons providing services. The process is online via the AFIP website.

Payment plan for SMEs: Includes tax and social security debts maturing on January 31, 2019 for SMEs, monotributists and self-employed: Payment on account of 1%, monthly rate of 2.5% and maximum of 60 payments. Join the plan from May 15th to August 31st. The first installment expires on September 16.

Other advantages

SMEs, among others, have the following advantages:

• Excluded from the VAT and withholding tax system is the payment by credit card to micro-enterprises.
• When micro-businesses will sell to retirees receiving VAT refunds, they will be excluded from income tax withholding plans for transactions that they carry out with a credit card or of debt.
• Export duties for services to micro and small enterprises: they will start paying taxes on the amount of exports exceeding $ 600,000 during the calendar year.
• Exports of consumer products by SMEs will be exempted when they exceed those made by that company during the previous calendar year and provided they have not exceeded 50 million of US dollars during the previous calendar year. The annual amount subject to tax relief can not exceed $ 600,000 for those who exported the previous year. And the $ 300,000 for those who did not export.
• Exemption is established in the income tax for exporting SMEs corresponding to the refunds agreed by the executive authority with respect to taxes paid in the domestic market, which directly or indirectly affect certain products and / or their raw materials and / or or services.

More organisms

• As of the 1st of this month, the maximum term for the financial entities Trade account credit, the amount of each sale made during a payment (by credit card or purchase) is 10 business days.
• They can not be applied commissions transactions carried out by the automated teller machine by the users of financial services who are human persons or at cash deposits in pesos on accounts whose owners are natural or legal persons who are SMEs.
• Businesses gas distributors limit the rate increase for SMEs by 50%.
• Arba has suspended the lawsuits against SMEs to which the payment facility plan to which they had previously acceded from 1 March 2019 to the following day, Friday 31, has expired.
• In the City of Buenos Aires, New SMEs, whether it is natural or legal persons, whose net turnover does not exceed USD 2 145 000 per year, which are less than 12 months from the start of activities and of which at least two employees are exempt. 100% of the gross income tax the first year and will pay 50% the second year of life.